Abstract:
This study examined the factors influencing technical efficiency in wheat farming in
Kenya using a stochastic frontier production function in which technical inefficiency
effects were assumed to be functions of both socioeconomic characteristics of the farmer
and farm-specific characteristics. The paper used random sampling to interview 160
farmers comprising 97 large-scale farmers and 63 small-scale farmers.
The results revealed existence of significant levels of technical inefficiencies in wheat
production, especially among the large-scale farmers. The study found that the magnitude
of technical efficiency varied from one farmer to another and ranged from 48.9% to
95.1%, with a mean of 87.2%. This implied that farmers lost close to 13% of the potential
output to technical inefficiencies. There was variation depending on the size of farm with
small-scale farmers attaining higher technical efficiency than the large-scale farmers.
The main factors that influenced the degree of inefficiency were education levels, access
to credit, and ownership of the capital equipment. Higher levels of education (12 years
and above or secondary and above) significantly reduced inefficiency as did access to
credit facilities and owning the farm equipment. The study recommended that farmers
be educated on the use of better techniques such as use of certified seeds and application
of recommended levels of fertilizer.
